see you tonight on the fox report at 7:00 eastern, 4:00 pacific time. and now it is business time. neil cavuto? >>neil: fema is under fire as storm victims are left to fend for themselves. welcome,en, i am neil cavuto, as the fierce nor'easter was moving in fema was closing down, and this sign hung up in staten island infuriating victims sandy who say they are being hung out to dry and the centers are still closed today a seen being played out across the new york metropolitan area and other hard-hit sections in and around the area. fema says it made the move because conditions were unsafe because of the nor'easter. try telling that to folks who are still freezing their butts off with homes destroy, no power, no heat, no water, and now no real help.

a reporter was the first guy to spot one of the signs. matthew, what did they say? and how many of them are out there? >>guest: we have only seen one so far that said fema office is closed because of weather but reporters across the city in the worst hit sites by sandy found fema centers have been closed because of the nor'easter yesterday and today. one in the rockaways will not open until tomorrow. >>neil: what do the centers do when they up and running? >>guest: the centers are supposed to provide information and ways to sign up for fema services and reimbursements things like finding temporary housing after your house is destroyed but what is confusing to many of the folks i spoke to, they are coupled with food distribution centers, clothing distributionsts run by the city, the state and volunteers and if they see one sign that says it is closed they are confused and frustrated and they

think everyone is shut down. >>neil: did they indicate how long they will be shut down? >>guest: in have re-opened today and we tonight a number this morning that were still cleaning up know and waiting for equipment and they opened up this afternoon, one if breezy point over in queens is going to remain closed until tomorrow. we have actually been told by some of the fema workers they have been told not to drive in the area because of icy conditions. >>neil: thank you very much. fema did issue a statement that mobile disaster relief centers were closed to ensure the safety of both disaster survivors and the disaster relief workers during the nor'easter. they can register by calling the 800 number, according to fema. or they can use the intent but that is difficult if you do not have internet or phones or power

my guest has no speed, no electricity what are you doing? how do you put up with this? >>guest: i have been going back-and-forth to friends' houses and families' houses, i have three kids with their schools located in different directions and it is not easy. we have had help from two gentleman and if it not for the two gentleman we would not have been able to survive. they had a bunch of volunteers that helped out with food and every day needs and like i said if it wasn't for them we would not have been able to survive. i haven't seen the red cross or fema until the day before yesterday. before then it was just the two gentleman we were depending on. they were wonderful. i am sure the whole community

thanks them. >>neil: we like them because they are buddies of ours. one is a wall street investor and he has been on this show many times talking about lately what is not going on in your neck of the woods. when you could see fema officials, what are they doing? they had to close today and of the relief centers but what do they do? >>guest: honestly the only time i have seen a fema official he was knocking on the door to get evaluation of a louse and they are only sitting one or two houses on the block, they have certain addresses to go to and then they are out of here. i have not seen a fema official to be honest other than that. >>neil: is there confusion, now, with the nor'easter and the snow it left, it has made the mess more messy. what is it like there now? >>guest: well, other than the

regular mess we have snow on top of it. it is starting to go away a little bit but it is extremely cold. we are having a hard time staying in the house and i am sure the let of the neighbors are, too, it is not pretty, not pretty. >>neil: just so you can keep on top of this, you and others can help you anyway they can, does this sound like a heck of a job brownie thing all over? who better to ask that michael brown? what do you say? >>guest: well, first and foremost i will not second-guess anyone. if a decision is made to close a mobile center because of risk to human life that is reasonable. but closing a fixed facility, a regular building, a business of some sort because you have a increase easter coming in does

not make sense. what they should have done and what perhaps they are doing, we are flying blind here but all the disaster assistance employees in the community relations specialist, ought to be out in the field. i have eastbound your footage and it is not like there is 12' of snow or the roads aricked over they should be out there getting in the community to let people know what to do and not just over fox news but knocking on the doors and running it like a political campaign going door-to-door. shear where you can get help or we will be closed and come back tomorrow. here is how you register. >>neil: what stands out and this is why i mentioned heck of a job brownie and we have talked about this before, during katrina, even with your protest, with president public we have problems do not get cocky, we have a handle on it, i am getting the same sense with this

storm. i don't think anything approaching the magnitude of katrina thank good but the treatment of officials and the way they back slap each other when the problem is still very much at hand, that is similar. what do you thick of that? >>guest: that is similar and it is absolutely wrong. what i see based on my experience there must be a lost miscommunication going on between state, local, and federal officials. if that is the case and let me tell you why i think it is the case, if you have food distribution, warming centers, and fema centers where you can fine up for the relief housed in the same place, and family shuts that down and no one is communicating that to the victims and the disaster area someone is not communicating with someone and that is serious.

>>neil: thank you for your insight, michael. the stuff gets coordinated and sometimes botched when everyone is not on the same page. michael brown was warning about this and we know about it. look what happened at the corner of wall and broad today. remember what happened yesterday in we added to that today. could it have anything to do with the number 53 the days we have now until every u.s. household is going to get hit and hit hard? they are doing squat. i am not talking about fema i'm talking about all of washington before the excuse was "nothing can be done until after the election."

>>neil: election over so now everyone is talking about the fiscal cliff with 53 days to go. just now. we were on it from day one. i'm telling you should be worried about this because both sides are to blame. we don't get hopping on this now we can be dogmatic all we want, you can be red, you can be blue, or you can just blow up, anyone who is paying taxes or anyone who is expecting to pay taxes will pay more in the new year. >> politicians have to step up to the plate and act in a bipartisan manner. >> do you draw the line that even credits and closing loopholes is a tax increase? >>guest: no, you should eliminate deductions and credits that no longer serve a purpose or --. >>neil: that is not a tax increase? >>guest: it needs to be offset by reducing rates. >> eyes are on the time period between the election and inauguration. >>neil: we have been warning

you and monitoring the markets, look what happened today. there are a lot of earning news but after what happened yesterday, better than 312-point fall off so we are off 440 points, in a couple of days. do you think this has anything to do with washington, dc, just sort of, you know, fiddling? rome could be burning? or election could be over but my guest is saying don't bet on this to change that soon or that dramatically or maybe at all. then what happens? >>guest: certainly there is a question of what happen. congratulations, mr. president, you won the presidency and your prize is to deal with the fiscal calamity if there is no deal going into 2013. if there is nothing done between now and january 1 the bush tax cuts expire for everyone, there

is beginning to be $110 billion cut automatically not only to the domestic side but significant of $15 billion in cuts to the defense department which even panetta said would be a calamity and you have --. >>neil: how much of a calamity the congressional budget office says you just let the rates go for the upper income and you keep, avoid most of the cuts, those of medicare and all, you can letsen the blow and it would not be damaging. they are picking and choosing, and the hit could be severe because this isn't like you can pick elements from a solid, it is all or nothing. >>guest: the question is, will they come to terms of a deal? >>guest: speaker boehner struck a conciliatory note but

what he meant is what mitt romney was talking about lowering tax rates and eliminating tax loopholes what erskine bowles supported in the "washington post" yesterday, a democrat. and you have senator schumer who noted the conciliatory tone of speaker boehner and he said it was a nonstarter because he will raise taxes on those that make over $250,000. >>neil: say he intends to do that and i am trying to save the nation beside read a prompter but i was trying to find a middle ground. if the middle ground is republicans getting over the issue of closing loopholes and getting rid of critics be like raising taxes and democrat could get over slowing the growth of entitlements is not like growing granny off the cliff they would be able to reach a deal to

extend everything for six months or a year and get in the real work of making a simpler tax code or simpler budget process. what do you think of that? >> speaker boehner wants to do a small deal and have an extension doing what you suggest, a reform of a tax code. president obama mentioned in the speech expressing he won the presidency that tax reform is something he is looking to do. >>neil: you mentioned the president and he will be off to thailand later this month in the middle of all of this which might be fine, a beautiful country. shouldn't it be all heads on deck? all ships in the harbor? >>guest: you would think so. this is a serious matter, something needs to be done and the question is, will they do what they did in the budget control act and say, we will do a temporary deal and extend things for six months to a year

and have some sort of committee come together and try to come to a big agreement. that is uncertain. some people on the democratic side that harry reid expressed he wants something done in the next if months. will they agree? will those in the house, republicans especially, agree to raising taxes? that is uncertain. >>neil: what is certain is they are in no rub. we will have to watch this closely and cue up soon our neil cavuto super hero thing because i will have to go counsel to washington and save the nation. leave the prompter here i have to go to washington, dc. actually, bring the prompter to washington, dc, because it is time for me to sink capitalism as if i don't have enough to do. did mcdonald's just prove that we're already getting fried? and sandy victims being told, get this, they will be dark right through thanksgiving.

lovely.

>>neil: it is time for me to don the have hero outfit again, and if that is not scaring you look at the corner of wall and birthday, we are down 434 points in two days. think of that. the biggest two day drop we have had since november of last area

and we are all sort of whistle ing past the graveyard. and this shouldn't be like a fox news alert. we, throughout the year, we have been reminding you of this day that is coming. we have been in washington, dc, we we were just there in usually october outlining what was going on, brokering a deal with norquist as to what would dine a tax hike to him. we found wiggle room on the adjustment thing and we talked to a number democrat whose said if you just want to slow growth in medicare that is not really like throwing granny off the cliff. i thought i was on verge of getting them to do something but, no, my best is saying despite my best effort it is time to return to washington, dc. actually, larry said go to washington, dc, and, larry here they go again. >>guest: that is right. i am looking for my super hero suit. today was an occasion --.

>>neil: i have one but it could be big. >>guest: mine doesn't fit it is a little tight. too much halloween candy but what we saw today was a repricing and a company like mcdonald's, as american as the apple pie saying we had the first monthly sales decline in a decade and what that shows a company like mcdonald's as defensive as they could be they cannot outrun the global slow down, a economy with 33,000 stores, 400,000 employees in 100 countries and they are the global economy. they are a reflection of what goes on around the world. 40 percent is in europe but a huge percentage is in the united states, and what they are telling us, the global slow down is real and they are telling us what americans are seeing every day, revenues are declining but the expenses are rising, and the spents are rising faster.

the fiscal cliff is only going to make the situation worse. today, wall street woke up, literally they woke up yesterday after the election and said look what is ahead. look what we have to deal with. it is the repricing of risk that is going on. it is good to have the wake-up call and to be mindful of what is on horizon. only then can we deal with it. >>neil: the republicans and democrats are trying to size the other guy up and there is not a lot of final for that. we have sized up the numbers. you with wonder if the guy next to you will blink or if you are blinking or someone will look like they giving away too much, you have to get off your butt and do something and i don't see the appetite to do that so i am not surprised when i see a corporate survey that says there is little reason for us to hire, little reason for us to expand because there is not much to lock forward to if this is still a big unknown.

i suspect a bigger unknown than when there was the big unknown of the election. >>guest: that is right. and you are getting the business confidence that is low and business owners, small business owners felt they were under attack and they feel more so today given the regulatory environment and what is interesting as we lock -- look forward, nothing is giving them the confidence to open their wallet. my phone was ringing off the hook if the last 24 hours with investors very nervous, they are learn about what is on horizon and the tax implications and the lit goes on and on and on and on and on. >>neil: our phone has been ringing off the hook mostly from those saying save us, neil, but leave the tights at home. we have a former top economic adviser to the president and one thing i commend him for he is a straight shooter, very fair,

pragmatic one for moving the ball forward. that is the angel i want to address right here because both parties have to adhere to their better angels and try to move this ball forward. how do we do that right now? >>guest: i agree with that. i thought, actually, the statement that speaker boehner made was a mature at the same time that he was basically saying all right, let's dress fiscal cliff and let's address, call it the grand bargain of long run fiscal consolidation and i think it might be bumpy for several months partly because you still have the mentality of the celebrity death match lingering from last speaker but to we can get beyond that there is a decent chance in 20 thin we can do tax reform or do a grand bargain and both sides, i think, would view that

as a big accomplishment. >>neil: i agree with that. here is what worries me, what we do in the interim, it is not as if we can just patch something together. there isn't enough time to do all of the this with a grand tax reform package and a streamlined budget process and avoid this constant problem. but how did it get there? if speaker boehner saying he is open to revenues and i am paraphrasing, i do not hear and this is not taking sides, the same willingness or the same leap on the part of democratic leaders to say, we are open to bringing in entitlements. >>guest: i don't know if that true. >>neil: is that what they need to do to then say, all right, we got the entitlement thing going and you have boehner, the tax thing, and we grow on that. >>guest: that is part of it.

i do think that would be part of it and certainly if you are doing the grand bargain you would have to have the entitlement reform, the tax revenue, you would have spending cuts, et cetera. here is what they will i am almost certain choose to avoid and that is if you remember back in 2010 the two sides made a deal to extend the tax cuts for two years and the feeling was, look, we have shown the world that the two parts can get along and they can do something and they even made another deal to avoid a shutdown of the government but then what what it is put the whole thing naked on to the debt ceiling increase and that allows what i called the hostage taking to begin. there was nothing else, the president had nothing to say to the tea party folks they wanted so he had no bargaining positions. >>neil: what it also did, this

time, if they tried to do that the montgomery county would sell off and they would he through that, and i do want your reaction the cbo is talking of eliminating we automatic spending cuts keeping medicare unchange that would boost the g.d.p. and factoring that all tax rates are extended but those for the rip, an ideal math scenario but do you agree with that? >>guest: wait. there is, you extend all the tax cuts but the high end and you don't do the sequester? >>neil: eliminate automatic spending cuts keeping medicare unchanged boosts united states g.d.p. by .75. of course it would, right? >>guest: if you just add up the mechanics of the math, that sundays right. i think the c.b.o. -- everyone ought to sober up, the election is over, look at the c.b.o. report. it shows if you go off the

fiscal cliff the economy goes into recession in the beginning of to 13. this is not a small matter. we have to address this. >>neil: thank you, very much, this this is just in bake terms and i know i sound too passionate but keep in mind i'm a nerd, a nerd with passion. with have all these things happening sat the same time, january 1, 2013, trillions worth of tax rates that expire. the very same second billions worth spending cuts kick in. all at the same time. that is coming. you have to do something to address that. you can talk in a grand way what you will do after that to address some of the bigger issues but in the meantime you have that to address. i want to tell washington, i were with you, and now i am telling washington i'm coming back to lot el you. i will go back there if you don't get off your ass and do something, this is all of

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[ male announcer ] join the millions of people who have already enrolled in the only medicare supplement insurance plans endorsed by aarp, an organization serving the needs of people 50 and over for generations. remember, all medicare supplement insurance plans help cover what medicare doesn't pay. and could save you thousands a year in out-of-pocket costs. call now to request your free decision guide. and learn more about the kinds of plans that will be here for you now -- and down the road. i have a lifetime of experience. so i know how important that is. >>neil: first san any and now this, a nasty nor'easter dumping up to 1' of snow in new york and new jersey and 14 itch -- 14" in connecticut more than 700,000 pow still without power across

the northeast. can you believe that? and now to rick on staten island where there is more trouble for folks trying to clean up. rick: tens of thousands two got their power back on after sandy lost it because of the nor'easter that dumped 6" on staten island. they still do not have power. they never got it the houses could look okay but the water was well over my head, they get 12' of water and we are a mile away from the ocean. we see huge piles debris and sanitation trucks were clearing massive piles of garbage. there is still so much left, 130,000 tons has been cleared. these folks are going in and out homes taking out everything. the drywall. the flooring. you can see the appliance have been pulled from the house. this is not usable. they are just moving it

identity. they are coming out. can we talk to you? we like on fox. >> this is my son's house. he had water in the basement, 20" on the first floor, so all this stuff had to be taken out. >> was he here? >> he left a minute before the water came down the block. high went to tell the neighbors and they could caught in get out. >> we talked to some of the neighbor. a family actually had water in their first floor and they stayed and someone came by on a canoe and took them out of house in a canoe and got them to safety, a very frightening experience for people in the neighborhood who are clearing out their homes and hoping they can get their power back on and rebuild. >>neil: incredible. how would you like to have in power if ten days and you are told you may not have it if the holidays? that is the living hell my next

guest is going through living in an area of brooklyn still reeling from sandy. how are you? >>guest: doing fine. still trying to get water up to the house so we can flush the toilet, take a bath it we have had no help. the national guard have done the best they can. the city is not good here. not good. not go. >>neil: your call is going in and out. what do they tell you? the power and this is happening in a lot of places but your situation seems longer than usual, what do they tell you? >> they are telling us after the holiday, so this is big depression because thanksgiving is to a couple of weeks, after that comes christmas, what are we supposed to do live in a hotel because they say fema will find a hotel but i don't want to be in a hotel when i am paying

rent. >> do you have family in the area? >> everyone is affected in the roths here. but why have family here anymore so it is just me and my kids in the house and it is hard. it is difficult. >>neil: how are the kidsst. >> they keep saying, mom, this is a dream, this is not real, this is not happening. i feel the same way. so i understand. in new york? this couldn't have happened to us. >>neil: how old are the kids? >> 11, 19, and 22. >>neil: you have your hands full young lady. we will keep watching but if fema is offering a hotel or something like that, it is better than an apartment without power and without heat. >>guest: you are right. you are right. >>neil: take them up on it. thank you very much. when we come back, if speaker

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>>neil: stuck between a rock and a cliff. lawmakers out of room with no time on the ticking tax-and-spending bomb. both sides say though will work together but they are not budging. what are republicans bing to do? our guest has some ideas. what is post likely if the speaker has indicated willingness to consider revenues such as tax hikes, i guess in the form closing loopholes and credits and that sort of thing, i don't hear the same talk from democrats wanting to pull in entitlements. maybe i missed it. what kind of a deal do you think will be put together?

>> there are two ways to get revenue from the federal government, increase taxes, cut spending, and the third way is to grow the economy, and the third way is where we are talking about growing the economy in tax reform results in a flatter system for america with a stronger economy resulting in more revenue that is a good direction. but we do need to work on entitlement reform because you can increase taxes until you are blue in the case but the --. >>neil: i understand that and i know where you coming from i am looking at the 53-day thing. ahead of that you are open to what speaker boehner was open to, that is, closing loopholes and that sort of thing and if that is part of a deal to extend the rates or the spending cuts until both sides can put together the very thing you talked about you would be open to that part of it? >>guest: well, we cannot increase taxes on the american people. if there are loopholes that can be closed that is one thing but

not increase taxes on men business or families. >>neil: okay, okay, okay, okay, i wanted to be clear. you open to closing loopholes and credits. you would be open to offer the democrats closing loopholes? >>guest: if we do not increase taxes on the membership. >>neil: sorry, sorry, sorry, i am trying to save the world here. the democrats come back and say what to you in order to get the yes on a deal, a temporary deal, to address the more serious issues, what do you want to hear from them? you have gone ahead and told them the credits, allowances, willing to junk them and you my democratic colleague do what? >>guest: look at entitlement reform. the two-thirds of the budget on auto pilot and the fact is medicare and cad caught -- medicaid spending that has to be

on the table. >>neil: what if they say we will look at the reform but they offer in skin like you just have with the credits and allowances, what do you specifically want to hear from them in the next 53 days to shake hands and do the hard stuff next year? >>guest: they have to lay out a clear path saying we will deal with entitlements and we will put it on the table and this is how we will put it on the table and have and kind of a timeframe commitment to getting that done, a timeframe of negotiations, a timeframe to come out with a plan and it cannot be wink-wink and nudge-nudge. >>neil: you have said well i am not only to reform i have put something on table here, closing credits and loopholes and that kind of thing so i want to hear more from you than just promising reform, right? >>guest: that right. right. >>neil: so, if they don't do that if they don't do that we are going to blow up?

>>guest: i don't thing we will do this. that is the risk. they wanted to us come to the table and we have come to the table and the american people expect them to come to the table. >>neil: i did not mean to be rude but when you are saving civilizations you do not have time for niceties. or that printing in color had to cost a fortune.

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>>neil: a new round of gas rationing in new york city and new jersey and now new york puts it in place tomorrow proving that the sandy-related problems are far from over.

the executive director of new jersey gasoline convenience store association, how will it help things out? >>guest: right now, the odd and even that governor christie put in place in new jersey was a very good idea. i was very skeptical when he did it. my members were skeptical. i kind of thought, gee, this is not going to work, but he was right, i was wrong, it is work ing. a lot of folks are saying we should keep it going longer because quote have gas disruptions going longer than we thought. do you hear that? how likely will this last? >> again, here i was wrong. i was telling my members i have been telling the press, i have been talking to my people that are trying to help us out here, and i thought this whole thing was going toize by the end of

last weekend and we would return to a normalcy right now. that has not happened. we have seen the lines diminish. however, there are still about 75 percent or 80 percent of the gas stations in the northern half of the state that cannot get gas or they don't have power but mostly they just don't have gas. the ones that got power ran out of gas quickly and were unable to resupply. so when we have a situation like this a lost folks in the lines and mayor bloomberg is starting the rationing, they could cap a tank and they are trying to cap it off, and that is allowed but i suspect if this drags on that may not be allowed. would they actually police tanks and how were you have in your tank? >> i do not know if they would

do that. i was around in the 1979 gas prices and i don't remember that, but the difference between 1979 and now is this: in 1979 we actually had an oil and gasoline shortage. right now, we do not have a shortage of product. there is plenty of gasoline. our problem is getting the gasoline from the distribution terminals into the tank trucks to the gas stations and, again, from the gas stations into the customers' cars. we have a clog and that clog when it breaks gasoline will be flowing again and the problem will go away. >>neil: we hope so. thank you. heck of a job, napolitano? the storm after the storm. and relief that ain't repoetly relieveing.

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♪ ♪ >> neil: finally, i don't blame president obama for all the problems folks are having after hurricane sandy, but i do blame president obama for all the taking bows for supposedly addressing those problems ahead of hurk sandy. and all his get out the help quick officials who didn't remotely get out the help quick since those problems with hurricane sandy. >> i want to thank howard glazer and the whole emergency team here as well as all our colleague, federal officials, fema, et cetera, and the local officials working as a coordinated effort. >> i'd like to thank the governor and his team for great job they have done. >> we are making progress and have been making progress since the storm. >> today you hear nothing but good things about fema. >> everybody sitting around the table made at it number one priority.

that continues to be my number one priority. >> neil: they're all in a big old bubble. giving each other high-five when folks they are supposed to help would give them a raised finger. we need amber alert for a clue. this isn't about boots on the ground. this is a slap upside the idiots' heads. you can't praise folks for helping out folks when they're not helping out folks with not many folks or as much help. most galling in the post-sandy, post-nor'easter aftermath is a heck of a job, hallelujah chorus from the government officials who insist they're on top of a problem but are not. insist boots are on the ground but for days shipments of bottled water, simple bottled water were not. relief centers are up and running but the storm victims are having a tough time finding. i have seen this for myself.

the government officials are lying. telling the more clueless bureaucratic bosses they are on top of things. let me tell you something, they are on top of squat. like the smarmy guy at work. every company has one, usually a few, who relentlessly sucks up to the boss saying everything is under control, chief. everything they oversee is fine and dappeddy. the boss shakes his hand as the beleaguered workers want to shake hair first. these are not bulleringed workers, are they? they are sick of b.s. human beings without homes, without power, without direction. without hope. people who are not easily wowed simply because janet napolitano helicopters in to say it's fine, when it isn't and helicopters out promising help is coming when it's not or the president brags about ruling about getting folks back then he flies five a campaign event without a crew. incredibly, president got high marks for handling a storm he

didn't. and the bipartisan promise to avoid a modern day katrina he hasn't. the election is over. but i'm telling you, the folks' pain is nottism guess they were pawns in a campaign big on imagery. what is amazing to me, that officials are still, still patting themselves on the back when so many of the average hurting folks, they're supposed to be sevenning would sooner kick them in the ass. who could blame them? who could blame them? i am not comparing it to the magnitude of katrina, but i am comparing it to katrina with the insular arrogance and indifference and seizing on a notion that a promise or step in front of a microphone saying you are doing something or making a speech, promising you will do something is doing something. don't thee